We are big fans of rapid pipeline adoption for oilfield water handling, and new steel tariffs stand to affect pipeline infrastructure planning and costs – but the jury is still out as to what degree, and whether exemptions may apply.
President Trump’s plan to impose a 25% tariff on raw and finished steel products have garnered a particularly negative reaction from the oil and gas industry, which uses significant amounts of steel for pipelines, drilling pipe, production/processing facilities, LNG terminals, and transportation vessels. Analysts quoted in the SPE’s thoughtful article have not determined whether operators will be considerably affected by the tariff but operation costs will undoubtedly increase.
Also, certain service providers selling specialty tubulars to China may be adversely impacted.
